MONITOR ONCHAIN ACTIVITY

“Anthropic's Mythos model is so capable that the company restricted access to 12 partners and a $100 million compute budget rather than releasing it publicly. It has already identified 20 zero-day vulnerabilities in decades-old software. Now the question over DeFi: if Mythos turns its attention to smart contracts, what survives?”

“But at the root, we do, in fact, go back to the fact that a single party had a single key, that thing was compromised by some bad actors, and that allowed them to take unilateral action. And apparently, this unilateral action basically, minting a whole bunch of USR was either not monitored or maybe they had alerts on it, but nobody was monitoring those alerts.”

“Even if you are using AWS and you're using their secret manager, you can have two-fac on AWS, you can have biometrics, and of course, on top of everything, if you care about security, you don't want to have a single key that ever has unlimited permission to do an infinite mint. So even if one person in the organization is compromised, you want it to at least require several more.”

“Many stable coins today will do things A, like controlling the velocity at which something should be minted. So maybe there shouldn't be more than 10 million mints within an hour. The max is 10 million per hour. And if you want to mint 80 million, it takes you a day, which is totally a legitimate choice.”

“Also, there are DeFi Native solutions to do this. So there are things like proof of reserve oracles. So you have a separate oracle that is basically tasked with understanding the value of the reserves at any given time. And there's just an on-chain check. There shouldn't be a gap.”